Can an employer be the beneficiary of a life insurance

by perfectlove » Thu Nov 11, 2010 03:54 pm

Can an employer be the beneficiary of a life insurance of an employee. Can someone get a life insurace for their employee.

Total Comments: 4

Posted: Thu Nov 11, 2010 10:24 pm Post Subject:

The employer cannot be the beneficiary of a GROUP life insurance policy in most states. However, there are commonly individual life insurance policies covering the life of an employee with the employer as the beneficiary. Some examples of this would be key-person coverage and certain buy-sell plans plus others. But not for group coverage.

InsTeacher 8)

Posted: Tue Nov 16, 2010 05:02 am Post Subject:

This is a new one.never knew that an employer can be a beneficiary of employee's life insurance under some circumstances.

Posted: Tue Nov 16, 2010 10:06 am Post Subject:

Yeah, it's popularly known as Keyman's insurance. An employer offers such coverage to their key employees. Absence of such employees might create obstacles in the course of their business operations.

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